Can XRP Reach $5 Amid The Market Uncertainty?

XRP is looking to make a recovery rally amid the ongoing market uncertainty followed by US President Donald Trump’s tariff announcement on China, Canada and Mexico. Analysts are studying the technical indicators and market dynamics to assess whether XRP can achieve a significant price increase soon.

Recent technical analyses suggest that XRP may be poised for a notable upward movement. In an X post, Dark Defender insinuates XRP to be in Wave 4 of the Elliot Wave Theory, gearing up for a breakout above $5.

Additionally, a report from Rivalry.com indicates that XRP’s price prediction for February remains bullish, with expectations of the price ranging between a low of $2.86 to $3.08. The price is expected to reach its highest level on February 15, 2025.

Market Sentiment and External Factors Influencing XRP’s Trajectory

Beyond technical analysis, market sentiment and external factors play crucial roles in XRP’s price movements. The cryptocurrency market recently experienced declines attributed to geopolitical events, such as the imposition of tariffs by the U.S. government. These developments have heightened market volatility, affecting digital assets like XRP.

Despite these challenges, some analysts maintain a bullish outlook for XRP. A report by BeInCrypto suggests that a breakout above key resistance levels could fuel a rally toward $4 in the near term. However, the report also cautions that risks remain, emphasizing the importance of sustained buying momentum and favorable market conditions.

Current Market Performance and Future Projections

As of February 4, 2025, XRP is trading at approximately $2.62, reflecting a 36% rebound from its recent low of $1.90 on February 3. Despite this recovery, the cryptocurrency remains down nearly 17% over the past week, underscoring ongoing market volatility.

Analysts are closely monitoring XRP’s ability to reclaim the critical $3 psychological level, which could catalyze further gains. A successful breakout above this threshold may pave the way for a rally toward $4 and beyond, contingent upon favorable market dynamics and investor sentiment.

While XRP faces challenges amid broader market uncertainties, technical indicators, and analyst projections suggest the potential for significant price appreciation. Investors are advised to stay informed and consider both technical and fundamental factors when evaluating XRP’s prospects in the evolving cryptocurrency landscape.